GoPro may be the leader of the action cam market, but that apparently didn’t help it sell more cameras last year. The company has announced that it will be trimming its workforce by seven-percent as expected earnings dip by a substantial amount in the final quarter of 2015.
The workforce reduction was announced in a statement outlining GoPro’s preliminary financial results for 2015. It explained that the move was to “better align resources to key growth initiatives.” The company expects that this will cost it between $5 and $ 10 million (RM22 and RM44 million).
The tone of the statement was less than stellar, despite the announcement that annual revenue had grown by 16-percent in 2015. GoPro disclosed that its Q4 2015 earnings were $435 million (about RM1.9 billion), a drop of almost $200 million from the same time period a year ago. Part of this was due to a hasty price reduction on the GoPro Hero 4, which received lackluster reviews upon launch. GoPro says that the adjustment alone cost it $21 million (about RM92 million) in revenue.